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It's been a good week for init innovation in traffic systems SE (ETR:IXX) shareholders, because the company has just released its latest yearly results, and the shares gained 4.5% to €39.60. Statutory earnings per share of €1.57 unfortunately missed expectations by 12%, although it was encouraging to see revenues of €266m exceed expectations by 4.0%. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Following the latest results, init innovation in traffic systems' twin analysts are now forecasting revenues of €322.2m in 2025. This would be a major 21% improvement in revenue compared to the last 12 months. Per-share earnings are expected to jump 25% to €1.96. Yet prior to the latest earnings, the analysts had been anticipated revenues of €299.7m and earnings per share (EPS) of €2.33 in 2025. So it's pretty clear the analysts have mixed opinions on init innovation in traffic systems after the latest results; even though they upped their revenue numbers, it came at the cost of a real cut to per-share earnings expectations.
View our latest analysis for init innovation in traffic systems
The consensus price target was unchanged at €56.00, suggesting the business is performing roughly in line with expectations, despite some adjustments to profit and revenue forecasts.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting init innovation in traffic systems' growth to accelerate, with the forecast 21% annualised growth to the end of 2025 ranking favourably alongside historical growth of 8.7% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 11% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that init innovation in traffic systems is expected to grow much faster than its industry.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. The consensus price target held steady at €56.00, with the latest estimates not enough to have an impact on their price targets.